The UK’s retail sector is struggling as consumer spending slips. Even the biggest shopping destinations are affected with Oxford Street London about to have a huge retail unit to fill when House of Fraser shuts up shop showing us that no shopping centre is immune.
Below we have compiled a list of the retailers who have disappeared altogether or who have announced they are having issues and could follow suit down the CVA route as a way of cutting costs.
Toys R Us – The magical place was left with millions of toys on the shelf after less and less customers headed there, becoming one of the first big casualties of the UK’s retail meltdown. All Toys R Us stores nationwide are now closed with experts this week stressing that the chain didn’t need to die.
House of Fraser – The troubled department store has finally announced closures which were a long time coming after announcing a £43.9million loss last year. Figures released as part of a takeover by the Chinese owner of Hamleys, showed the retailer’s sales fell from £840.9million to £787.8million in 2017 – a drop of 6.3 per cent. This drop has partly been blamed on Brexit and recent terrorist attacks however whatever the reasons Swindon town centre is going to be left with a huge whole to fill.
Maplin – The electrical goods retailer collapsed into administration in February with stores putting up the closing down sale signage in April.
Poundworld – The budget retailer is expected to fall into administration in the next few days after failing to secure new investment putting 1,500 jobs at risk. Poundworld currently occupy the old Woolworths site in Regent Street.
Poundstretcher – Credit insurers are reported to be tightening terms for suppliers to the discount retailer in a move which is generally seen as an indication of concerns a retailer is about to go bust. Poundstretcher’s closure should it happen will leave another hole in the Stratton shopping scene after the closure of Toys R Us.
Debenhams – After seeing pre-tax profits slump it is expected Debenhams could follow the lead of House of Fraser and shut low profit stores. The chain is understood to be looking to downsize its estate by at least 30 stores blaming a change in shopping habits and bad weather for its latest problems.
Marks & Spencer – With a huge store in Swindon town centre, the retailer has announced the closure of many of its biggest stores, about a third of all those selling clothes and homeware, by 2022 after reporting a huge fall in pre-tax profit to £66.8million in the year to March 31, 2018. Swindon is not set to be closed.
Mothercare – The baby and maternity store have announced up to 50 stores to close although the Greenbridge location is not understood to be affected.
Carpetright – Carpet and furniture giant Carpetright issued its second profit warning of 2018 and is entering talks with lenders. The firm, which has two huge Swindon outlets, has warned it is set to disclose a full-year loss.
Homebase – With the DIY chain being sold last week for just £1 to the owners of HMV it is widely expected stores will close. The chains previous Australian owners attempted to slim down its £1billion rent bill and announced the closure of up to 40 of the worst-performing stores. How the Swindon stores and distribution centre are to be affected it is not yet known.
Arcadia Group – In May 2018 Sir Philip Green’s Arcadia Group, owners of Topshop, Topman, Dorothy Perkins, Burton, Evans, Wallis and Outfit reported profits dipped by 42 per cent to £124.1million with sales falling 5.6 per cent in the year to August 26, 2017. Any closures here would hit the town centre hard with the stores spread over over four retail units plus the large outlet at the Orbital.
Can the high street really afford to lose many more big names?